What are OTC Derivatives?

These refer to Derivative contracts that are traded off exchange or Over The Counter (OTC), but cleared and settled through a Central Counterparty like an exchange or clearing house. Some examples of commonly traded OTC derivative contracts are:

Benefits of Clearing

The Central Counterparty, as a middleman assumes all contractual rights and responsibilities. This encourages greater confidence and familiarity through the standardisation of contracts.

Simplicity is maintained with Central Counterparty being both buyer and seller, this helps to reduce buyer/seller credit risk.

There is price transparency as positions are marked to market and cash settled against settlemen prices determined by the Central Counterparty.

Better price opportunities can be expected in a wider market place.

Why Trade OTC Derivatives with Phillip Futures?

Multi exchange clearing memberships

Access to electronic trading to complement OTC clearing

Intraday risk monitoring

Trade OTC Derivatives with Phillip Futures

Visit us at our main office or ouraffiliated investor centresto open a Phillip Futures account today. For more information on OTC trading, please give us a call at (65) 6531 1526 / (65) 6531 1531 or send us an email at pfpl_otc@phillip.com.sg.